(11-07) 04:55 PST RICHMOND -- Voters in Richmond rejected by a large margin a proposed penny-per-ounce tax on soda and other sugar-sweetened drinks, one of California's most closely watched local measures and one that was fiercely opposed by the beverage industry.

The tax was pushed as a solution to the obesity epidemic by City Councilman Dr. Jeff Ritterman, a retired cardiologist who said he had treated countless patients at Kaiser Richmond who suffered from obesity-related health problems.

"I'm disappointed, but overall I think this has been a positive for Richmond," said Ritterman. "It's started a great conversation in this community. I think President Obama should (propose a soda tax). Gov. Jerry Brown should. This is just the beginning of the wave."

Measure N would raise about $3 million a year via a license fee for any business selling sugar-sweetened beverages in Richmond establishments or stores. A companion measure, O, asked Richmond voters if those tax revenues should be used on after-school sports, sports fields, healthier school lunches and nutrition programs for youth.

The American Beverage Association poured more than $2 million into defeating Measure N, saying it would hurt small-business owners and that soda consumption is only a small part of the country's obesity problem.

Ritterman proposed the measure as a way to discourage Richmond residents from drinking soda and other sugary drinks, which he said are collectively a prime culprit behind the rise in diabetes, obesity, heart failure and other related issues.

Sugar in beverages, he said, is especially dangerous because it converts almost immediately to fat instead of first passing through the full digestive system. It's no coincidence that obesity rates in the United States have mirrored the rise in soda consumption, he said.

Cities, states and counties throughout the country have been passing laws cracking down on soda consumption. Among the most notable was New York's recent "Big Gulp" ban on sodas larger than 16 ounces.

Measure N would have appliedto hundreds of beverages, ranging from Pepsi to chocolate milk to apple juice. Baby formula and diet soda would have been exempt.

The beverage industry fought hard to defeat the measure with billboards, mailers and political consultants.

"There's no doubt America has a weight problem," Chuck Finnie, spokesman for the American Beverage Association, said last month. "It's the result of lifestyle - exercise, what we eat. Sodas are only a part of that. Healthy outcomes are generally associated with access to quality health care and quality foods. This measure doesn't do that."

Ritterman's Yes on N camp, by contrast, raised over $30,000 and relied mostly on homemade postcards and a word-of-mouth campaign.

Among other promotions, Ritterman pulled a red wagon around town loaded with 40 pounds of sugar, the amount he said the average Richmond child drinks in a year.

The city appeared deeply divided on the issue. Several City Council members oppose the tax, saying it unfairly affected Richmond residents who couldn't afford to shop in other cities.

"This is a tax on poor people. That's all it is," City Councilman Corky Booze said earlier in the campaign. "People are going to drink soda anyway. But people who can't afford cars are going to end up paying more."

Some Richmond residents said a tax was not likely to curb their soda consumption, because, ultimately, they like soda too much to worry about the cost.

"I know it's unhealthy, but I like it," said taqueria owner Juan Cerritos, who said he drinks four or five Cokes a day. "It tastes good."